Letters to the Editor May 2010 Issue

by 20 May 2010

Subject: Bringing Up The Rear: Howard Miller The Witch Hunter March 2010 Issue of TNR

Hi Martin,
Good article. The point you’ve made is well taken. This whole thing about “scams” in the loan modification business is pretty consistent with how Mr. Obama and his Administration think about the private enterprise in general: it is one big scam!  After all, businesses are profiteering from hard working people (like the “evil” insurance companies with their whopping 3-6% profit margins). Their utter disdain towards business and private ownership is quite obvious. Basically they are acting as if the private enterprise is  only  temporarily necessary to pay taxes  in order to support the government, but preferably it should be abolished  in the future in  lieu of “this time it will be successful” new order (e.g. socialism or communism).  Never mind all the empirical evidence that such a system never worked anywhere in the past (or present). 
Robert W. Dudek
Statewide Home Loan Corp
Great article! I am so angry when all the fury is directed at the wrong people. The government programs are of no value. The ratio used for home modifications is the same exact formula (front end ratio) as the borrower qualified for so if their interest rate has gone up of course they will not qualify for a loan modification because they exceed the qualifying ratio. And if they have reduced income, of course the same applies. It does not take a math major to see that the loan modification programs are a scam as run by the government. But the other very significant factor that NO ONE is talking about is that it is not in the banks best interest to modify the loans, they can collect on the credit default swap, sell the property and collect again - sweet deal. Plus if the bank is one of the banks seized by the FDIC they have an agreement in place whereby the FDIC will cover 80% of the loss, the bank files the credit default and collects and than sells the house. I just love it another scam authored by the government. I think we need to open up the bank files and see just how much money they have made off this scam and just how much the government has cost the tax payer, that’s the rip-off.
I don’t do loan modifications, people believe they don’t have to pay me so I tell them to contact HUD and get it done for free. But of course if they wanted to pay me I could point out the defects in their documents plus remind the banks of their TILA violations, credit default scam and double dipping techniques. Plus most of the foreclosures are illegal because the beneficiary is really not the beneficiary and the trustee conducting the sale has not been substituted properly or at all.  The scam shall continue until the people wake up. Would it help to point that out to the president of the California State Bar??
Patti Geib
Certified Mortgage Specialist
Capital Line Funding Group
Subject: Cuomo’s Crossing: An Outsider’s Appraisal of the New HVCC Rules
July 2009 Issue of TNR
I realize the writer did his own story or Appraisement of the issue. However, what the writer failed to realize is that mortgage brokers can’t select their own appraiser for a reason. What isn’t being released is the fraud that NAMB is trying to hide - Cuomo won’t release (in detail) the rampant fraud mortgage brokers perpetuated on the general public and appraisers. The story helps the crooks who participated in the economic downfall get a leg up. The appraisers who are complaining hard core about the HVCC and Appraisal Management are the ones who can’t go back to the old ways of fraud and making money doing it. I’m sorry, but the writer basically has helped criminals while bashing criminals. We have fought for a decade to get rid of commission driven professionals from cherry picking and blackmailing real estate appraisers. Your article does more worse than good, sorry to say.
By the way, the HVCC doesn’t say that Appraisers are forced to use AMCs. The writer needs to get better facts so its opinion will be more credible. Additionally, the problems started before Cuomo. The HVCC is legal, as well; all it does is take away the privilege of some crooks from selecting their own appraiser.
I give the article a D+, it was pro-crooks and anti-crooks.

Benji Brossette
An Independent Real Estate Appraiser Trainee from the State of Louisiana - A Real Estate Market Analyst!
Dear Benji –
Thank you for taking the time to voice your opinion. Your response will most certainly draw a crowd.



Is TILA-RESPA a good or bad thing long term?